In the report, Morgan Stanley noted, “We think Trulia is overvalued relative to peers despite strong near-term business tailwinds. We believe that the addressable market for the online real estate advertising industry is smaller than market expectations. The improving housing market could be a rising tide that lifts all boats; Trulia could continue to grow subscribers and ARPU at strong rates even if it lags Zillow in adoption. Trulia uniquely benefits from the consumer shift in time spent to mobile, as mobile homebuyers are more attractive to agents due to their propensity to be in-market.”